Caterpillar(CAT) The Motley Fool·2025-02-03 18:38Group 1: Tariff Impact on Caterpillar - Concerns around new tariffs on goods from Canada, Mexico, and China have led to a pullback in Caterpillar's stock, which is heavily reliant on the global supply chain [1][2] - The White House announced a 25% tariff on goods from Canada and Mexico, with the tariff on Mexico suspended for a month, and a 10% tariff on goods from China [2] - Canada has responded with retaliatory tariffs that could affect Caterpillar's sales, while China is planning "necessary countermeasures" [3] Group 2: Company Performance and Outlook - Caterpillar's stock fell 5% last week after missing expectations in its fourth-quarter earnings report, with revenue declining 5% to 16.5 billion [5] - Adjusted earnings per share decreased from 5.14, although it beat estimates of $5.03 [5] - The company anticipates a slight decline in revenue in 2025 and a lower adjusted operating profit margin due to weak demand in international markets [5][6] Group 3: Strategic Positioning - Caterpillar's CEO stated that the company has a significant manufacturing presence in the U.S. and is a net exporter, which positions it favorably compared to other companies [4] - The company aims to manufacture in the same region where it sells to limit tariff exposure, although it does move some components globally [4] - A potential trade war could complicate the company's return to growth [6]